Watering the Economy

Mahatma Gandhi once said, "The world has enough for everyone's need, but not enough for every one's greed."

Unfortunately, this is the truth about the world's water supply today. Water scarcity is a fact of life faced by more than two billion people globally. In India, this problem is particularly pronounced. Millions of Indian citizens suffer from a lack of access to clean drinking water. With the second largest population in the world, the problem is only expected to grow. By 2050 India will overtake China's population, when it is expected to reach 1.6 billion people. With a growing population, comes the stress associated with it. A massive agricultural sector to support food requirements, a growing economy to sustain the livelihood of citizens and the need for drinking water will only place a larger burden on quickly dwindling water bodies.

The World Health Organization reports that 97 million Indians lack access to safe drinking water, while 21 percent of the country's communicable diseases are transferred by the use of unclean water.

Water, pollution and over-pumping are deemed as critical issues but the largest issue by far is the mismanagement of water resources. If the last five years are a peek in to times ahead then erratic and unpredictable weather conditions can be expected to worsen due to climate change. A large fear associated with a shortage of water is that it may quickly become the root of domestic and in-ternational conflict.

Mr. Arun Lakhani, MD of Vishvaraj Infrastructure and an ardent promoter of water supply solutions states, "Mismanagement of water is obviously a human process issue. Unclear laws, government corruption and industrial and human waste have drastically reduced the amount of water available and have contributed to the pollution of huge quantities of water."

In their defence, the Indian government has had to play a balancing act, ensuring they meet the demands of urban and rural india, across different social strata, meeting economic and environ-mental targets. Today they stand at an important threshold, where a change in their actions, processes and protocols can prevent devastating water scarcity.

According to The World Bank, after China, India is the largest user of ground water in the world. 114 million Indians will face desperate shortages if something is not done soon.

The Solution.
Any solution to the water scarcity problem must come from within the nation. For example, Andhra Pradesh has successfully pioneered a highly ejective program of self-regulation. Involving the community to manage water schemes and creating awareness campaigns amongst farmers has allowed the state to reduce its water consumption.

However in order to make a large difference and curb the problem before it grows beyond us, the government will have to involve the private sector which has the financial resources needed to bring in change at a nation-wide level and the streamlined processes required to complete gigantic projects.

Mr. Arun Lakhani believes that a partnership between the Public and Private sector is the best way forward. "To recycle and reuse water in order to reduce the stress on natural sources and avoid conflicts is what is needed."claims the PPP expert.

Those who support the PPP model are of the understanding that a privatized approach would improve efficiency, encourage innovation and prevent waste. In fact the usage of treated water for industrial purposes is expected to reduce fresh water consumption by 20,000 MLD, creating extra supply for urban use. Such a model would also allow local municipalities to earn extra income as the treated water will be sold to industries and the revenue will be shared between the Urban Local Body and the private company.

A great example of this is the Sewage Water Reuse program started in Nagpur under a PPP model, spear headed by Lakhani. 100% of funding is provided by VIL and was the first PPP project in water supply in India, which proved to be a great success. When the water sale to a nearby thermal plant begins, the revenue will be large enough to cover the maintenance and operation cost of the treatment plant for the coming 30 years.

There are several challenges that private players must face along the way. Government protocols and policies often create difficulties in execution of projects. Bureaucratic requirements often hold up approvals and the delay translates to extra costs for companies. Additionally, in India, water legislation, water recycling, efficient re-use of water, water conservation and infrastructure has been ignored for far too long. Due to India's historical background, water has never been managed as a scarce resource but rather as an abundantly available resource. To break away from this mindset, private companies must not just plan and design solutions but raise awareness through knowledge sharing.

Indian citizens are skeptical about building partnerships with the Government or a private sector company, deeming both as unreliable, corrupt or profit driven. "The trust of the people, in what we need to accomplish and our intentions are of utmost importance. India will not be able to prosper without bridging the gap between the Public, administrators and developers through transparent communication, advices Mr. Lakhani.

The participation of the people in governance and local development and planning is the only sustainable way to build a successful PPP, while benefiting the environment, public health and econ-omy.

In order to avoid a decrease in agricultural production, an industrial stagnation, water related epidemics and a possible war over water India must take action. It must make water supply and waste water management a national issue; much like food availability and economic growth was in the past decades. People need to begin harvesting rainwater, treat waste effectively, and regulate wa-ter usage and most importantly conserver water. On the national level, the Government will be wise to explore all its options, including PPPs and ensure that a monitoring system is in place, to ensure efficacy, transparency and a better relationship with the citizens.

Making 24x7 Water Supply a Reality Across India

India has quickly evolved and grown to become a super power in today's global scenario. The will and handwork of its citizens and favorable economic conditions have allowed this. Now, it needs to adapt and learn how to sustain itself. With a population of 1.2 billion people and counting, it is safe to say that India has long reached its tipping point, and must now take focused measures.

It is clear that with the growing demands, any government with their existing resources is unable to provide stable and well-built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the government makes very tough decision regarding the expenditure of this money and must prioritize amongst several other aspects such as scientific research, agricultural support and military defense, to name a few.

However, a solution has emerged in the form of Public Private Partnerships (PPP), a model wherein the government works with either one or a consortium of private companies, in order to achieve goals. A great example of this is Nagpur. The city has successfully implemented India's first ambitious 24x7 water supply scheme, in partnership with Veolia. With a population 2.7 millions people, this project has proven to be a great challenge, an experiment and a model to be followed across the nation. The PPP venture has been been functional for the last three years.

Similarly, another PPP explored a 200 MLD waste water treatment and reuse project. Treated waste water was to be sold to nearby thermal power plants and industries.

A leading expert in the field of PPP, Mr. Arun Lakhani, MD of Vishvaraj Infrastructures, believes PPPs to be the best way forward in tackling India's growing needs. "Going the extra mile, is what Private players are great at. Innovation is the key and can only be achieved when the government works with companies and keeps the People in the loop"

With success stories such as the one unfolding in Nagpur, it is time to apply what we have learnt to other parts of India. In fact, as of 2015 several states and cities have already begun signing PPP agreements, especially in the water supply and waste water treatment sectors. Punjab, Haryana, Panchkula, Gurgaon, Faridabad and Karnal are some of these.

The big question posed by the government and the public is "How can PPP help with water related issues?"The answer lies in the way private companies function. Known to be process driven and financially more resourceful, private sector players carry all the ingredients needed to implement large scale infrastructure projects. Significant investments are needed despite government announcements of creating Smart cities and AMRUT schemes. In addition, challenges such as tariff revision to meet operating costs, revenue collection risk and lack of base line data for analysis also need to be overcome.

After Nagpur, Haryana and Punjab plan to implement state-of-the-art water supply systems and water waste management protocols. PPPs would improve efficiency in water systems, water treatment plants and in the reuse of water. Depletion in groundwater, in these agriculturally important locations, has made them the ideal choice for this model.

"It is imperative to take action before it is too late. It is the responsibility of every citizen and more so of companies, capable of making a difference.", stated Mr. Lakhani.

However, Private companies face their own issues when trying to assist the nation. PPP models have not seen much expansion in the last few years. In order to be successful, political and administrative will is needed but more importantly the involvement of individual citizens. The largest obstacle comes in the way of financial risk mitigation. A structured system is needed to ensure that local bodies are able to fund the developments needed through appropriate channels.

"It would be wise for the central government and local municipal bodies to quickly develop systems that can be monitored and sustained across different states."Says Lakhani. There are several private players capable of taking on these challenges but as with all large scaled, investment intensive projects, transparency is necessary, as is the flexibility of all those involved.

The Ganga Rejuvenation Plan, has been keep under close watch due to its economic, social and religious importance. The same diligence needs to be shown across all projects. A "Reduce, Recycle and Reuse"model is perhaps the best way forward for India's water and waste water management.

Arun Lakhani: Entrepreneur Par Excellence

It is not very often you come across a personality who,despite keeping a low profile, has a huge impact on a grand scale. One such personality is the Chairman & Managing Director at Vishvaraj Infrastructure Ltd. Mr. Arun Lakhani. He has been a beacon of positive social change aimed at bettering the lives of the common man.

To understand the magnitude of his achievements we need to look at his humble beginnings. Hailing from the small village of Malkapur from Buldhana district, he did his schooling from a Marathi medium school, going on to complete a degree in B.Sc from Amravati and an M.Tech in Petro chemicals. Yet he has achieved success that many dream about but only handful achieve.

He began his career in software writing and data processing. But being a born entrepreneur, it was only a matter of time before he eventually started this own company; Mahagas. This company was a supplier of LPG gas and was one of the earliest private players in this sector when LPG was decentralized in India.

Mahagas was just the beginning of his glorious achievements. He went on to acquire Vishvaraj Infrastructure Limited (formerly known as Vishvaraj Housing company private limited) a company specializing in infrastructure development. However, his dream was always to be a pioneer and his vision led him to do ground breaking work in waste water management and water conservation.

Realizing the importance of water as a resource, he wanted to ensure that it is not carelessly wasted. He eventually ventured into waste water management projects and is today one of the leading private organizations that works with various state governments, taking up Public Private Partnership projects in the space of water management, conservation and provision.

To understand how impeccable his vision is, we do not need to look any further than the water project done by his company Vishvaraj Infrastructure Limited in Nagpur. The project was done in collaboration with Municipal Corporation of Nagpur. The result was that a large portion of population of Nagpur is now receiving water supply 24x7. Other projects on similar line have been started by the company in South India.

It is projects like these that cement his position as an extraordinary visionary.

Mr. Arun Lakhani is a multifaceted personality and few people know about his passion for sports; especially the game of Badminton. As a result of his love for Badminton, he has actively participated in the activities that led to the advancement of the game. He is a prominent member of the executive committee of Maharashtra Badminton Association and has just added another feather to his cap by being appointed as the president of Maharashtra Badminton Association (MBA).

There is no doubt that Mr. Arun Lakhani is a harbinger of change and a man with grandiose vision. If you are looking for a role model or inspiration to bring positive change in the society then Arun Lakhani is the one you should be looking up to.

Arun Lakhani: A Visionary

It is said that innovation distinguishes a leader from a follower. The vision of a single man can change the face of the world. One such visionary is Mr. Arun Lakhani, today MD and chairman of Vishvaraj Infrastructure. A simple man from the seat of Vidarbha – Nagpur has made a long journey starting of in software and data processing to being one of the leading authorities on Public-Private-Partnerships (PPP) in India.

Arun Lakhani was the primary driving force behind the Nagpur 24X7 water project, a landmark PPP project by the Nagpur Municipal Corporation to provide hygienic drinking water to the city especially the slum dwellers. Nagpur essentially opened it's doors and mind to an opportunity that would help build a streamlined and efficient model which could be replicated in the future.

Led by Lakhani Nagpur became the first city in India to build a 24/7, fully pressurized drinking water supply system. A joint venture company aptly named Orange City Water was created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM)

Taking up the mantle for waste water management and water conservation in the city Lakhani is today a speaker and delegate at various national and international water conventions. Mr. Arun Lakhani participated in the Global Water Investment summit as a speaker and addressed the Session on 'Water Infrastructure Finance' on 7th May 2014 in London, UK. Describing the Indian water scenario, he emphasised on Benchmarking best practices in PPP, Stakeholder Engagement, Innovative Financing Initiatives and Risk Mitigation Strategies.

Driven by his mission to have a sustainable supply of clean water in India he was recently invited by the Planning Commission to be part of the committee on Industrial Water in addition to being a prominent member of all recognized trade organisations like CII, FICCI & Assocham.

His vision is to have water sustainability by cleaning and maintaining the river water supply and his company leads various R&D projects towards the same. In addition he is working on core water supply mechanisms in terms of reduction of non-revenue water, pressure maximization utilizing level surveys, tank capacities, quick speed house service connection etc.

With visionaries and leaders like Arun Lakhani the Government and citizens of India can rest assured that the dream of a Swach Bharat and Clean Ganga will be a reality soon.

Arun Lakhani: Social Entrepreneur & Philanthropist

Arun Lakhani, Chairman & Managing Director Vishvaraj Infrastructure Ltd., on his education, career, and how the company was transpired. It gives a glimpse on his journey as an entrepreneur.

The Ganges - A New Hope

The River Ganges is considered to be the holiest river in India with a deep and long history of spiritual, economic, and religious significance. A life-giving source, the river provides water to 40% of India's population. The river on its path from the Himalayas, where it rises from, to the Bay of Bengal, crosses 2500 km through the northern and eastern states of India. Geographical boundaries do not hold back the mighty river, which flows through parts of Nepal, China and Bangladesh. It accounts for 30% of our country's water resources and 26% of its landmass. The Ganges has been declared India's National River.

Yet the fate of River Ganga itself seems bleak. It is one of the most polluted rivers in Asia, crossing the WHO defined levels of permissible pollutants by 3000 times. Everyday 1.7 billion litres of waste such as defecation, untreated industrial waste and pollution during religious events runs into the river. Additionally, about 89 million litres of sewage is disposed off in the river daily. The water is very quickly becoming unfit for drinking, bathing and even agricultural purposes. The discovery of Mercury in the water has raised alarms.

Earlier governments have attempted to clean the Ganges. Rajv Gandhi, in 1984, began a campaign to restore the river and rebuild the banks. However, due to a lack of technological resources and expertise at the time, the complex problems were unresolved.

Three decades later, on August 15th 2014, current Prime Minister Narendra Modi began the "Clean India"movement. The Clean Ganga Project is of national significance and the roadmap towards achieving it is not a smooth one. Billions of Rupees, massive intellectual and physical resources and meticulous governance are essential components required to take on this mega problem. However, it also represents a great business opportunity for those involved in urban planning, clean technology, wastewater management, sanitation, agriculture and infrastructure.

"The Government has taken a great step forward but in order to maintain momentum and achieve objectives it is imperative that the private sector play a large role in the execution of national plans." states Mr. Arun Lakhani, MD Vishvaraj Infrastructure and a great promoter of government-private relationships.

The "large role"mentioned by Mr. Lakhani can be best defined as a "Public Private Partnership"or a PPP. Many believe that only private organizations with their streamlined processes and sense of accountability towards investors would be capable of bringing this much sought after change. Some experts have even gone as far as to state that only foreign companies with their technology and managerial prowess can solve the complexities of this situation. In fact, foreign direct investment regulations may be relaxed to attract funding and technology.

A PPP model has given rise to several opportunities and with vigilante monitoring and diligent reporting, a clean River Ganga could be a reality. The current situation, however, is dire. Thousands of villages need toilets, waste management facilities and sewage treatment plants. Small manufacturing units often dump toxic waste and in order to prevent this, treatment facilities will need to be constructed. Modern technology makes it possible to remove pollutants from the water and treat it but this too will require resources and budgetary expenditure. Long term solutions highly depend on the education of people living along the banks, development of sustainable practices within the agricultural community and the prevention of chemical fertilisers flowing into the river.

"The big question is, "Who will take on this colossal task?". The answer is "Everyone, starting from the government and trickling down to individual citizens. Everyone needs to be responsible."said Mr. Lakhani.

Indeed, the government has begun on this journey and has beckoned several individuals and organisations to join it. With a massive budgetary requirement of $15 billion and a timeline of 8 years to achieve full restoration, the Government has turned towards private investors. Some reports have suggested that 70% of the funding will be provided by the Private sector, across the coming decade.

With the opportunity to make a change and earn profits comes a large risk. Not every private player is willing to enter into a PPP, let alone be eligible. The long term nature of this project and the perceived issues of working with the Government has kept several players away from the Clean Ganga Project. Then there are those who have risen to the occasion and hope to make the most of the current situation.

Not surprisingly, international companies have been quick to make a move. Israeli and Danish companies were some of the first to show interest in entering a PPP. Some 200 Israeli companies have been considered capable of purifying the Ganga.

In the south, the state of Karnataka has allowed NaanDanJain, an Indian-Israeli company, to create a test farm to study drip irrigation with the hope of saving water. Agriculture and the irrigation industry are at a stage where their growth is inevitable and this has attracted attention of foreign players.

Gujrat has already opened its doors to a group of Danish companies who are implementing a water management project. The PM's state aims to reduce pollution through this pilot project, study the process and spread the knowledge. Revolutionary ideas, transition of expertise and a change in practices are the goals.

A natural way of cleansing the river water, by creating a series of channels and wetlands, is being explored by Water Revive, a bio-engineering company which aims to use low-maintenance, natural solutions.

"With a problem this complex.it only makes sense that different approaches are explored within the PPP model", states Mr. Lakhani, an expert in executing PPPs.

The Israeli Ministry of Industry, Trade and Labor is leading the NewTech initiative which aims at matching Indian water, energy and environment technology companies with Israeli counterparts to discover solutions.

This is just the first wave of hope that India is witnessing. There is much to be done and Indian companies will also play a large role in the coming years, but it is a great sign to witness support from countries across the world. It has helped to reinforce the benefits of a PPP and encouraged several National players too. There will be medium and long-term projects of varied nature and each will be a great chance for private companies to come forwards and help in shaping the evolution of the Ganges and the Nation.

Clean Ganga - A River full of Hope

Jawaharlal Nehru once stated, "The Ganga to me is the symbol of India's memorable past which has been flowing into the present and continues to flow towards the ocean of the future."

Today, although the words still hold true, the future of the great River Ganga itself seems bleak. The mighty river cultural, ecological and critical economic value for the entire nation. The river on its path from the Himalayas, where it rises from, to the Bay of Bengal crosses 2500 km through the northern and eastern states of India. Geographical boundaries do not hold back the mighty river, which flows through parts of Nepal, China and Bangladesh. It accounts for 30% of our country's water resources, 26% of its landmass and 40% of India's population lives in villages, towns and cities close to the river which is why as of 2008 the Ganges has been declared India's National River.

Without any other information, it may come as a surprise to many that this nationally significant water body is among the top 10 most polluted rivers, globally. However with the river basin directly supporting 357 odd million people and spanning an area of 1,086,000 sq. km, the effects of pollution and overpopulation have taken its toll on the river. Cities such as Delhi, Agra, Meerut, Kanpur, Lucknow, Varanasi, Patna, Allahabad and Kolkata create and discharge massive amounts of waste water. Out of the approximate 11 billon litres of sewage that enters the river from 181 towns, only 45% is treated.

Governments have come and left, each having understood the implications of a damaged Ganga and trying to begin initiatives to clean the river. 11 states along the river have been identified for implementing a mammoth sewer network. With an operation this size several government agencies will need to come together but more importantly a large and consistent source of money is required. However it is clear that the government, with it's numerous priorities, will not be able to fund the entire project on their own and will definitely not be able to efficiently manage the operations single-handedly.

Governments have come and left, each having understood the implications of a damaged Ganga and trying to begin initiatives to clean the river. 11 states along the river have been identified for implementing a mammoth sewer network. With an operation this size several government agencies will need to come together but more importantly a large and consistent source of money is required. However it is clear that the government, with it's numerous priorities, will not be able to fund the entire project on their own and will definitely not be able to efficiently manage the operations single-handedly.

In 1985, the Ganga Action Plan was launched to improve the water quality. Phase-2 was initiated in 1993 with the aim to treat sewage before it entered the Ganga and four tributaries - Yamuna, Gomti, Damodar and Mahanadi. 2009 saw the emergence of NGRBA - National Ganga River Basin Authority which was responsible for empowered planning, financing, monitoring and coordinating authority for cleaning the river. None of this was enough and it was soon very clear that a major leap had to be made if India was to save its bountiful Ganga.

With this awareness the Indian Government has created the 'Namaami Gange' Project - a programme to conserve the River Ganga. An initial amount of Rs. 20.4 billion was allocated during 2014. A multi-entity approach including the ministries of Rural Development, Shipping and Water Resources has been adopted. Their objective is to free all villages along the river bank from open defecation by 2022 and incentives states to extend sewer reach to all 181 towns. A further Rs. 510 billion will be invested in to sewerage infrastructure during the course of this project.

With a project of this scale it was clear from the start that the government would need to join forces with the private sector. A Public Private Partnership (PPP) model made perfect sense. A PPP would help in raising additional funds and implementing various subsidiary projects such as setting up of sewage treatment plants.

The Centre has decided to completely fund certain activities under this programme, while handing over others to the private players. The disappointing results of the GAP has also driven the Centre to provide operation and maintenance assistance and they have opted for a PPP/SPV approach.

In addition a four-battalion Ganga Eco-Task Force and a territorial army unit are being planned to keep river pollution at a check.

In order to understand how a PPP could greatly help this initiative, we need to understand the financial and operational implications of the entire scheme. We spoke to Mr. Arun Lakhani, MD Vishvaraj Infrastructures, a PPP expert and a great promoter of government-private relationships.

"It is important that the objective be clear. The Ganga is crucial to the future of India and its prosperity, hence, it must be protected and developed so that it can yield all that it is capable of. This is not a one company or one government job. We must all contribute and a PPP creates an excellent path for this", said Mr. Arun Lakhani

With an estimated investment of Rs.80,000 crore need to clean the Ganga, the government is in dire need of financial assistance. The private players will be able to shoulder a great portion of this burden by bringing in about Rs. 56,000 crore.

Activists and the media too will have to play a great role by spreading awareness of the importance of this project and by encouraging the citizens to take a more pro-active and responsible approach towards the conservation of the river. A special ministry has been created by the ruling party to over see all activities related to the holy river.

With an investment of 25-30% of the total, the government hopes to encourage organic farming near the river to reduce the flow of pesticides and fertilisers in to the river and provide better sanitary infrastructure such bio toilets.

Private sector players will assist in dredging the river at certain points to allow the navigation of small ships such as the ones traversing from Varanasi to Hoogly. Tourism is being seen as a great way to boost the economies of the villages and towns along the Ganga but also as a way to encourage people to maintain the river.

The responsibility of collecting waste water and treating it will lie on the shoulders of private players who will need to maintain government-set standards and provide regular reports. "Public-Private-Partnerships are a successful model when executed with equal accountability, efficiency and honesty. Monitoring is necessary for long-term results", commented Mr. Lakhani.

In the longer scheme of things, it is yet too early to see how the PPP model will fare. If the attempt to Clean Ganga is to be successful, the government will need to remain efficient while planning, vigilante when monitoring and transparent when communicating with the public. Private sectors players entering this project will hopefully bring with them a streamlined approach, processes which will reduce time and cost and the expertise need to once again witness the River Ganga in all its power.

"We must learn to give, give, and give like the Sun, And like Mother Ganga - with no hesitation, no expectation, no vacation and no discrimination." – H.H. Pujya Swami Chidanand Saraswatiji, Founder of Ganga Action Parivar and Spiritual Head of Parmarth Niketan (Rishikesh)

How PPP can be help Digital India Campaign a Success

Undoubtedly, internet is one of the greatest stories of mankind. In today's digital age it has become essential that people should be able to access information and upgrade skills using digital devices. Besides, the launch of the Digital India initiative by Indian government has only reiterated a belief that digitization is the key to future success. But the huge and varied demographics of India are a huge challenge.

It won't be easy for government to implement this initiative at such a large scale without external help. One of the best options it can use is Public Private Partnerships or PPP as it is quite often called.In this article, we look at how PPP can help Indian government to achieve its goal of making India digital.

Current Situation:
As per industry projections, India will be home to about 526 million internet users and more than 105 billion devices by 2018. While this is great news for government's campaign for digitizing India, it does not possess all the resources required to meet the demands of implementing its digitization campaign. This offers a huge opportunity for the private players to help government and gain some mileage for themselves too.

We look at the benefits of this type of partnerships for digital India initiative

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Benefits of PPP for Digital India:
Efficiency is something that is highly valued by the users and is one of the crucial factors in achieving success in today's competitive market. "The most important thing that a private player will bring to the table is efficiency" says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and advisor to Government on PPP. Yes, funding will also be a crucial part but we all know efficiency is not the forte of the government.

As mentioned earlier, the number of internet users in India is rising steadily. Thanks to PPP, the private players will be able to avail of the government resources that will help them achieve sustainability and scalability.

Another important benefit of PPP for digitization process is that government will be able to have access to new, innovative ideas and technology. PPPs will help government and IT industry to improve the information ecosystem that will transform city operations.

To see how this works we look at the example of an app developed for Chicago city. The app regularly publishes the schedule of sweepers that lets the citizen know whether a sweeper is coming along or not.

The government IT spending is about $7.2 Billion and a huge portion of this amount will be for digital India campaign. PPPs will enable the government to roll out various initiatives on the basis of strong technology infrastructure that will be provided by private players.

Although we can be swept away by the positives of PPP, there are yet problems that plague it. Next up we look at what these problems are.

Problems faced by PPP in Digital India:
One of the biggest issues is that PPP for. It is not surprising to IT & technology is a new proposition for the Government. See that PPP is more related with domains like defence and infrastructure. One does not come across PPPs for IT sector that often.

Another problem PPPs face is the presence of outdated laws and policies that are currently in practice. In its early days, funding for PPP was not that easy. Although government has noticed this issue recently it has now amended laws pertaining to funding.

As is the case with PPPs in other sectors, there are considerable risks for private players who are keen to participate in such an endeavour. But this can no longer be a reason to not participate in such endeavours. Government has now taken initiatives aimed at minimizing such risks for private players.

India has made progress in key developmental areas one of which is IT and the time is now ripe to make it count. If we want to successfully implement digital India campaign then PPPs are key to it.

Driving Innovation through PPP

Undoubtedly, innovation is the key to economic development. It is also a fact that small enterprises have proved to be a leading source of innovation. They have become one of the keys contributors. Realizing this potential of small businesses, the Government has also taken initiatives, such as Public Private Partnerships (PPP), that encourage them to participate in contributing to the development of the nation through innovation.

In this article, we look at how PPPs can be used as an effective tool for innovation.

PPP and Innovation:

"There is no denying that the private sector is way ahead of the public sector as far as innovation is concerned. Governments must capitalize on this. Public Private Partnerships opens up new opportunities for innovation and stimulates demand for innovation in multiple sectors such as infrastructure, medicine, science, agriculture etc" says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and leading authority on PPPs.

PPPs can play a key role in not only solving a problem but doing it innovatively. To understand how, we can look at a very common problem that is faced by urban cities around the world; traffic congestion.

For cities like Mumbai, Delhi and other metro cities, the problem is not just insufficient roads but also handling of huge traffic inflow. Constructing more roads might help to some extent but it won’t solve the issue entirely as traffic will keep increasing with economic growth.

"There is a need for an innovative solution that will minimize or eliminate traffic congestion and utilize the existing roads better. This is where government can partner up with private companies to solve this issue" says Mr. Lakhani.

A real life example of such a partnership can be seen in Chinese city Tiajin which faced severe traffic congestion problem. The city, in collaboration with World Economic Forum’s Future of Urban Development & Services (FUDS) Initiative achieved its goal of drastically minimizing the traffic problem.

The goal was achieved through an intelligent transportation system (ITS) technology which uses sensors which provide drivers with real-time traffic information that will enable them to avoid routes with heavy traffic.

Benefits of using PPP for innovation:

• Helps to attract private sector expertise which is so essential for innovation
• Optimize the use of available knowledge
• Pooling of resources can help to address issues that cannot be addressed by a single entity
• Provides a greater return on research funding
• Successfully addresses the issues so that commercialization of outcome is possible
• Create a competitive environment for open and transparent tenders in the implementation of innovative projects
• Offers a huge platform to apply innovations

Barriers for PPP:

• Lack of joint efforts by both the partners:
  It has been commonly observed that the Government is like a sleeping giant in PPP ventures. In fact, there is an attitude that once a private partner has been chosen, the work is done.
  
  
  Also, innovation is generally assumed to be a domain of private sector. If innovation is to be achieved, this cannot go on. There has to be joint effort by both the parties.

• Unnecessary interference by public partner (Government) in innovation process:
  Time and again we have seen how promising initiatives have gone off track thanks to interferences at every other stage of such ventures; especially political. It is not rare to see political parties trying to exert their influence on how PPP ventures shape up so that they can walk away with the credits.

• Unequal financial risks:
  This one is not too difficult to understand. Given the laidback attitude of the Government over the years towards PPPs, the private sector has always bourn the financial brunt of such ventures. This has proved to be a big hindrance in encouraging more private entities to participate in PPP. It is high time government takes steps to ease these inhibitions and fears of the private parties.
  
  
  PPPs definitely offer us an excellent channel of innovation that can be deliver high quality optimum results. There are countless ways PPPs can be utilized to not only solve problems but also achieve economic development through innovation and also improve our lives.

Commercially Viable Waste Water Management

India is home to the second largest population in the world. The steady population growth along with urbanisation and industrialisation has put a lot of pressure on the fresh water resources in India.Add to this the increasingly stringent environmental laws working towards sustainable solutions and we have a water crisis on our hands.

As a result, the demand for waste water management services and technologies is on the rise. Unfortunately, the existing services are struggling to match up to these demands thanks to lack of adequate investment, laws and R&D required in this segment.

We spoke to Mr. Arun Lakhani, MD Vishvaraj Infrastructure and expert in waste water management solutions for the Government of India to understand different ways of managing the water crisis.

Adapt to water sector PPP regulations:
For too long, the regulations for commercial water usage in India have been far too lenient, leading to wasteful and polluting use of water. Unmonitored commercial usage of water is one of the leading reasons for the current shortage in water supply and water pollution that plagues most urban cities.

Bring in the latest water management technology:
Waste water management requires high-tech plants, processes and technology. The past few years has seen the Indian market pick up on these technologies with the influx of multi-national companies bringing latest technology to India.

Currently, technologies such as filtration, softening, demineralisation (DM), ultrafiltration (UF) are regularly used for water treatment. But that is not sufficient to tackle the water management issue.

The time has come for companies to adopt the latest technologies such as Zero Liquid Discharge (ZLD) technology.

To put it in simple words, ZLD is a technology that helps plants meet discharge and water reuse requirements, enabling businesses to better manage water.

One of the examples of successful implementation of ZLD is the Tirupur project in Tamil Nadu. This was undertaken by Praj industries which offer ZLD and recycle and reuse solutions with advanced technologies.

Tirupur was facing severe pollution issues that were caused by textile industries operating within the region. The factories would discharge their coloured effluents into the surrounding water bodies that were polluting the water.

To tackle this situation, Praj industries decided to implement ZLD technology.You can imagine how grave the situation was, as almost 600 textiles units remained closed for almost two years.

By implementing the ZLD technology Praj industries was successful in solving the water pollution problem. Besides, they also found ways to cover the project cost too such as selling the treated water to the end users.

One of the reasons for a lackadaisical attitude of companies towards adopting these technologies is the high cost of acquiring and implementing these techniques.

However, given the fact that regulations will become stricter in the future, investing in technologies like ZLD will bring benefits in the long run.

As per Frost & Sullivan research firm, the Indian water and wastewater treatment market earned more than Rs 6,300 crore in revenue in the year 2011. This is expected to reach Rs 10,230 crore in 2016.

The market is on the rise for waste water management service providers with more and more companies adapting to better solutions.

As the fresh water resources are depleting it is high time the waste water management companies must shift their focus on incorporating sustainable, innovative and advanced technologies.

Final Word:
The waste water management sector is quite dynamic and it will only keep on posing challenges for companies offering these solutions. It is thus imperative that these companies keep incorporating advanced automation, technology and expertise to meet the public needs at affordable cost. It will go a long way in ensuring sustainable economic and environmental development.

Rejuvenating The Ganga

Water, especially fresh river water, has been the cradle of the civilization and has led to both the birth & downfall of human settlements. To see a worthy example of the importance of the rivers in any civilization we need not see any further than the Great Ganga - a historically revered water body across the ages in India.

But the Ganga, as the world knows it, is slowly losing its identity; one of the major reasons for this being industrialization.

Ganga - More than just a river:
Ganga is one of nature's finest spectacles and a sight to behold. Those who have visited this mighty river have never left without being awed by its majesty and grandeur. The river has flown in all its glory since thousands of years giving birth to innumerable stories and scriptures around it.

Sadly, these very cities that the Ganga gave birth to, have contributed to its tragic downfall.

The Ganga is dying a slow and visibly painful death.

Ganga - The Problems:
One of the biggest problems is the pollution and it is not surprising. Take any major river around the world and you will see it facing similar issues.

Toxic is the right word when it comes to defining the current condition of water of Ganga. And the reason for it is not too difficult to find.

One of the obvious reasons being the domestic and industrial sewage that is being released uninhibitedly every day into the river waters. With so many industries flourishing around Ganga it is was only a matter of time before this happened.

Another reason that has contributed greatly to the pollution of Ganga are the rituals performed at its bank; immersing the ashes of a dead person being one of them.

But that's not all. If you think human beings are the only ones affected by this, you are wrong.

The polluted water has led to the depletion and in many cases extinction of the freshwater flora and fauna. To get the idea of how bad the situation is sample this. There are only four species of river Dolphins left in the world and one of them happens to be in Ganga and it has been declared endangered.

Over fishing is another menace plaguing Ganga. The river is a hunting ground for fishermen. But the fishermen too cannot be blamed for it as there is hardly any other alternative way of earning their livelihood.

Solutions for cleaner Ganga:
The solutions to these problems need to be implemented in a planned manner which must be pursued with strong dedication over a long period of time.

"The immediate step to take would be minimizing the pollution of the water. The river bank needs to be stabilised by carrying out activities like plantation. Laws must be put in place specifically for industries around Ganga so as to minimize the damage to the river." Says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and leading authority on waste water management.

Another method is to bring in private partners in this cleanliness drive. They must be engaged through partnerships of varying types. Thanks to the advancements in water conservation technology there are now methods available to ensure the preservation of this great river.

We now come to the most important component of the solution, people.

An awareness must be inculcated in people about how their actions (and inactions) are hurting the Ganga. By making these very people a part of the solution will go a long way in ensuring a cleaner Ganga.

They must be encouraged to inculcate civic habits that improve the quality of Ganga's surroundings. The dependence of fishermen on Ganga should be minimised by providing them an alternative source of livelihood.

The cleaner Ganga movement has gained a lot of momentum. We must stop viewing Ganga as a part of a particular community but rather as a source of national pride.

This should be looked at as preserving a national heritage that cuts across the lines of faith and unites people. Hence, it must be considered as a duty of every Indian to contribute towards it.

Nagpur 24x7 Water Projects - An Experiment and a Testimony

The situation
In the sphere of urban development and economic sustainability, it is pivotal to acquire and study as much data as possible. Analysis and learnings from past and on-going projects is necessary for determining the success of future projects and the allocation of national and local budgets.

With this in mind, nations such as India must plan decades ahead in order to achieve the desired growth. With a growing population of 1.2 billion people and a scarcity of resources, it is imperative that the Government take swift actions towards long term goals. Water, and its availability, is one such resource which is seen as not only a necessity but an indicator of general well-being. Urban India is often found struggling to provide citizens with clean drinking water and the situation only becomes worse as people migrate from the towns and villages to surrounding cities.

Nagpur, the third largest city in Maharashtra, is a great example of a local government taking action to cope with the increasing demands of its inhabitants. Due to rapid urbanisation of Nagpur across the last two decades, the challenges for adequate water supply have also increased. Availability of water has been inconsistent and ranges from a few hours a day to a slightly rare but possible, few minutes a day. Compounded with this is the mismanagement of water distribution leading to losses of up to 60%. In addition quality of water is frequently found to be below drinking standards.

In 2012, in order to face this gigantic challenge the Nagpur Municipal Corporation chose to enter in to a Public Private Partnership, a landmark move in the history of the Government working hand-in-hand with the private sector. Nagpur essentially opened it's doors and mind to an opportunity that would help build a streamlined and efficient model which could be replicated in the future.

Nagpur became the first city in India to build a 24/7, fully pressurised drinking water supply system. A joint venture company aptly named Orange City Water was created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM)

An expansive requirement for infrastructural upgradation and replacement means that it will take a minimum of five years to connect every citizen with 24/7 water supply. On their end, the Nagpur Municipal Corporation will retain ownership of the assets and will take responsibility of setting up the tariffs. Orange City Water will operate all the water treatment plants and the water distribution network, amounting to a combined capacity of ~750 MLD

The goal is to eventually connect the entire city, including the slum population with a safe supply of water, better in quality and pressure. Water wastage is a great concern and this hope is to reduce it significantly, through the better maintenance of storage systems, pipes and taps.

During our interview with him, CEO of Vishvaraj Infrastructures, the driving force behind Napur 24x7 water supply project, Mr. Arun Lakhani shared a poignant view on this matter. "Our nation's government needs to see private players not just as tax-paying entities but partners of development. PPPs need to set their goals high in order to gain the most from the benefits."

Benefits
The benefits are of this PPP model can only be understood and appreciated by comprehending the advantages that are gained through a 24/7 water supply system.

24x7 supply translates to a better public health.Maintaining full pressure removes the risk of bacterial contamination that can occur during interrupted water supply.

A PPP in this sector ensures a massive improvement in the services provided to all consumers, who henceforth are seen as customers. An increase in quantity, improvement in timing and consistency in availability across all starts of society is not just expected but required from an economic standpoint.

Service to the poor and to the rich is seen through a non-biased viewer. 24x7 supply means all citizens can hope to enjoy better health and hygiene which preventing the loss in economically productive time earlier used for collecting and carrying water. Indirectly, this saves time for employment opportunities.

24x7 allows customers to pay for better service as it reduces the costs they earlier incurred for coping with the inconsistencies.

Through efficient management overflowing storage systems are avoided and collected water is prevented from being discarded when new water arrives.

A PPP model ensures that the use of technology is given priority and in this way conservation is encouraged through metering and state-of-the art monitoring systems. This helps achieve management and operational efficiencies and reduces illegal connections.

Before concluding, it is necessary to go back to the start. The idea is not just to take action but begin an initiative so that one can learn from mistakes and evolve. It is impossible to put a system into place without overcoming challenges, correcting flaws and understanding changing requirements. The Nagpur Municipal Corporation has taken the first step towards the future, but the path will surely bring forth several challenges. "Let hurdles be a learning opportunity and not a reason to stop the development of our nation", says Mr. Arun Lakhani.

Public Private Partnership - The Need of the Hour

India in 2015, is at the brink of a great leap forward, culturally, socially and economically.

With a population of 1.2 billion people and counting, we as a nation need to evolve and adapt to our ever-changing environment in order to sustain ourselves and prosper.

At this tipping point, our government finds itself stressed and lacking resources to provide stable and well built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the Government needs to provide for several facilities and infrastructure in one amongst many others such as scientific research, agriculture, military defence etc.

Social, economic and ecological issues have become a pressing matter for the Indian government and sustainability models which were once ignored are now being studied in order to tackle the obstacles expected in the coming decades.

India's strategy towards managing accelerated growth has been a great move in the geo-economical arena. Public Private Partnership models have slowly been developed over two decades and have witnessed success and learning experiences as well. However, several Private sector players are often wary of entering Government contracts. A host of reasons, play a role in this.

Leading PPP expert and MD of Vishvaraj infrastructure, Shri. Arun Lakhani ran us through some of the constraints that all private sector companies must take account of before venturing in to a PPP.

"Now, more that ever, there is a need for established companies and new entrepreneurs to come forward and play a vital role in developing our Nation, but only once they understand the challenges and are able to convert them in to opportunities", shared Mr. Lakhani.

Considerations for PPP Projects
Since India has open it's proverbial doors to PPPs, post the economic reforms in the 1990s, projects have faced issues which have restrained more the successful and widespread implementation of this model.

Legal Volatility
As Indian policy enforcers evolve they improve in their execution of long-term plans. However, one must understand that this is a process and as with all such matters, changes are inevitable. Over the years several inconsistencies have been pinpointed and improved. However, this has required private partners to alter their operations and internal policies, sometimes at their own cost.

"Staying updated with PPP regulations, flexibility and a streamlined approach to the environment is the best way forward", says the much experienced PPP advisor.

Tariffs
Although, progress has been achieved, there is much to be done about the pace at which we are growing. Deregulation of tariffs for public services needs to happen quicker if private investors can make the profits that will determine their future decisions.

Greater financial management and a stringent cost-vigilance is the only way forward according to Mr.Lakhani.

Transparency in the Bidding Process
Although technology has greatly assisted in making the tender acquiring process more transparent, several PPPs have shown signs of inconsistencies when it comes to bidding and suspension processes.

If more industrialists, builders and foreign investors are to step-in, transparency will have to be prioritised.

Although these aspects of our current socio-economic situation which every private company must keep in mind, they need not act as deterrents. With a growing investment in technology, streamlining of government protocols and taxes, there is much to be gained for those willing to place their faith in the subsequent success of PPPs.

Understanding Public Private Partnerships

A lot has been said and debated about Public Private Partnerships, but for many individuals this just serves as a term used to describe an obscure idea of development occurring in our nation. It is important for the citizens of India to be involved in decisions being made within our democracy and for that to occur they must be educated in the intricacies of something as impactful as the creation of a partnership between the public and private sector.

In the context of infrastructure development what is PPP?

As is the case with most countries, governments face the challenging task of providing new infrastructure services and assets such as electricity supply or a new highway. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) India struggles to create adequate systems. Funds raised through taxes and regulatory fees are massive yet limited, due to multiple expenses such as scientific research, agricultural support and military defense, to name a few.

In such a scenario, partnering with the private sector provides an attractive solution towards creating a new supply source for infrastructural improvements.

How does PPP work?

A legal contract binds partners in a PPP to share the responsibility for the implementation, operation, management and monitoring of the infrastructure project. Emphasis is laid on each partner's skill and their ability to fulfil public needs through the efficient allocation of resources and risks in return of rewards.

What advantages PPPs may provide?

To better understand the advantages of a PPP we spoke to Mr. Arun Lakhani, MD of Vishvaraj Infrastructures Limited. "Governments worldwide are increasingly turning to the private sector to help provide services in communication, energy and power, water and transport sectors. Streamlined and efficient methods usually adopted by corporates are the reason for this"

In addition, there are several other reasons which encourage governments to collaborate with private players.

• The access to additional resources that can be utilised to match the exponentially increasing needs of the public

• Availability of extra investments through local and international players

• State-of-the-art technology employed for the operation and management of these services

Reduced cost in the form of better executed planning and development of each project is a large benefit that is often considered. A profitability driven approach ensures better screening of options, structuring of projects and choice of technology.

"The Indian Government can benefit from an increase in services, without spending immediate cash, avoiding major risks by transferring them to the private sector and ensuring timely delivery of projects", added Mr. Lakhani.

PPP are often misunderstood to be simple construction projects by the masses. However, in reality, there are differences between a traditional construction project and a PPP in terms of development, implementation and management. The objective of the PPP is to deliver a specific service and not simply build an asset. Most importantly PPP contracts are more complex and have a much longer tenure than a construction contract. An understanding of this is necessary not just for the partners but also for the general public interested in the development of the country.

Countries around the world have experimented with different forms of PPP. In India, there are 6 major models, Service Contract, Management Contract, Lease Contract, Concessions, Build-Operate-Transfer and Joint Ventures. The government usually analyses the need for a PPP and then decides upon the model through which to achieve it's goal. A great example of a PPP model in our country is the Nagpur 24x7 water project.

Nagpur, due to rapid urbanisation across the last two decades, has faced severe water supply challenges. The availability of water has been highly inconsistent ranging from a few hours a day to a few minutes . Mismanagement of water distribution lead to losses of upto 60%. Quality of water was frequently found to be below drinking standards.

In 2012, in order to overcome this gigantic challenge the Nagpur Municipal Corporation chose to enter in to a Public Private Partnership, a landmark move in the history of the Government working hand-in-hand with the private sector. Nagpur essentially opened it's doors and mind to an opportunity that would help build a streamlined and efficient model which could be replicated in the future.

Nagpur became the first city in India to build a 24/7, fully pressurised drinking water supply system. A joint venture company aptly named Orange City Water was created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM)

There several challenges faced when forming a PPP and these are often cited as reasons to avoid a collaborative approach. However, naysayers and critics fail to see the potential that PPPs provide for the citizens and the government. It is of course important to understand the challenges and in most scenarios these are caused to due to bad governance, weak policies and a lack of transparency. "As a country we should overcome the challenges, figure out ways to build a better PPP model based on strong protocols and the use of technology and rise over the risks that this model presents, because only in doing so is India going to match the benchmarks of economic growth set by other nations", advises Mr. Arun Lakhani.

There is much to be learnt and researched about PPP models, but as citizens the right way ahead would be to study the projects proposed under PPPs and vocalise our concern or support.

PPP in waste water management - A Look at China

Every individual, community, city and nation grows till a tipping point after which it needs to evolve and adapt to its environment in order to sustain itself and prosper. With a population of 1.2 billion people and counting, it is safe to say that India has long reached its tipping point.

At this juncture, any government, right winged or left, would find itself stressed and lacking resources to provide stable and well built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the Government needs to provide for several facilities and infrastructure in one amongst many others such as scientific research, agriculture, military defence etc. However, the need of the hour cannot be ignored. It is imperative that citizens have access to basic necessities such clean drinking water in order to ensure good health, prevention of diseases and an acceptable standard of living across various strata of society.. In light of these challenges a partnership between the Public Sector and the Private Sector is often a highly sought after solution. A model which allows governments to execute ambitious projects with the assistance of privately owned, better managed and streamlined corporations while overseeing and regulating the projects, PPP (Public-Private Partnerships) seems like a great way ahead. Yet, over the last two decades several individuals and organisations seem to have developed the opinion that PPPs cause more losses and damage. Perhaps we should look at our neighbour, the People's Republic of China with the eye of a student and with the intention to benchmark our own PPPs.

With 600 million people residing in 655 cities (as per 2008 reports), China is experiencing rapid urbanisation. If the country were to follow current trends, just the urban population itself is projected to pass the 1 billion mark in 2030. This roughly breaks down to 8 mega-cities with over 10 million human beings in each of them.

Accelerated growth has come at its own cost. Social, economic and ecological issues have become a pressing matter for the Chinese government. Sustainability models which were once ignored are now being revisited and studied in order to tackle the obstacles expected in the coming decades.

So what exactly is China doing?

Sector by sector, China is developing Public Private Partnerships. Wastewater Treatment is at the forefront of their priority list because of it's direct impact on the life of Chinese citizens. With growing air pollution also becoming a major concern, the government wants to ensure they resolve the issue of waste water management as soon as possible. PPP are being considered for several reasons such as to reduce the inefficiencies of state run activities and to take advantage of additional financing brought in by private investors. Their model includes:

• Methods to ensure that groups of every economic class receive drinking water

• Increase in accountability and improvement in the governance of managing authorities

• Allowance for a higher level of public participation

• Systems which encourage local bodies to take on the tasks and responsibilities of water management.

It has not been an easy or short path. China began to sow the seeds for PPP back in the 1990s by deregulating the water sector. This allowed private and foreign investors to contribute towards the water supply and waste water management infrastructure.

China has explored several models ranging from complete privatisation of projects to foreign investors holding majority stakes in joint ventures

There are currently an estimated 400 water supply and wastewater PPP projects in the PRC and most of them run on a Build-Operate-Transfer model, allowing for several private players to form partnerships. Treatment of waste water from Shanghai, The Huangpu River and Yangtze River provide surface water sources for urban areas, the population of which exceeds 17 millions.

The Shanghai ZhuyuanYoulian No. 1 wastewater treatment project (ZY1WWTP) is the first mega-ton wastewater treatment plant (WWTP) in Shanghai, which has the capacity of treating 1.7 million m3/day. The JV benefitted from private capital investment, bank loans and was also assisted by the indirect subsidisation provided by the local government. bank loans.. It is worthy of note that in return the JV had to provide an online monitoring system and allow third-party quality checks. This is a great example of how important government involvement and vigilance is.

Under these conditions, the plant serves 23.5 million residents and carries out a minimum treatment of 1.4 million m3 /day.

The service fee that was attached to the PPP is almost 40% below the government's own projected cost.

The Chinese government has been successful in transferring the financial burden of the project from the public to the private sector by aligning the performance of the JV to a variable service fee.

Mr. Arun Lakhani, a leading expert and advisor on PPPs and the MD of Vishvaraj Infrastructure Limited is a great believer in a strong and long lasting relationship being formed between the public and private sector. "Our national highways and expressways now competing with international standards and getting international recognition, stand testament to the fact that Public-Private-Partnerships are a successful model when executed with equal accountability, efficiency and honesty", said Mr. Lakhani.

There is much to be learned from our neighbours across the border and it would be wise of India to pay heed to the rising need for PPPs in major public sectors. With appropriate regulation, monitoring and political will the Indian government can give the Indian Infrastructure scenario the boost it needs to support our growing nation and compete with other first world countries.

Challenges to PPP in Water Management

Traditionally provision of water for drinking and domestic usage has been the domain of government but due to the pressure of increasing population, rapid urbanization and other developmental trends the government is struggling to fulfil this basic need.

This has led to government looking at Public Private Partnerships as a way to deal with the issue of water supply. But it is not as simple as just starting a PPP venture and the problem taking care of itself.

Although PPPs in water sector in India were started way back in 1990s, the progress of these PPP ventures has not been a smooth affair,Inspite of the government having instituted the National Water Policy of 2012 with provision intended for the privatization of water-delivery services.

So what are the reasons for such a situation? Why is successful implementation of PPP for water management in India proving difficult?

To understand more about the factors affecting successful private partnerships in water management we spoke to Mr. Arun Lakhani – MD Vishvaraj India,the first company to have successfully implemented 24x7 water supply to the city of Nagpur under a PPP model.

• Lack of Trust Factor:
  In India there is a long standing bias against the private sector as the perception is that the private sector is always looking at making profits at any cost.
  
  This inherent lack of trust is one of the biggest challenges facing PPPs in water sector in India. So even though the projects might get a go ahead with the support of the government, it usually ends up achieving limited success without the buy of the public in general.
  
  On top of that, private companies usually demand commercial secrecy. This in turn means that the populace does not have access to crucial information. Such a situation can only harm PPPs in the long run.
  
  "Private partners in PPP must put in place trust building measures that will eliminate the distrust factor" says Lakhani.

• Securing Finance Is Not Easy:
  As a commercial entity banks offer loans to corporate entities at higher interest rate. The reason is that the private sector has a lot of risk associated with it which has often resulted in higher percentage of payment default.
  
  In addition, it is generally the private partner who has a larger financial investment in the project than the public partner. Inability to raise adequate funding often leads to high risk, mismanagement and eventual failure of projects.

• Lack of Political Will:
  Another key challenge facing the PPPs in water sector is the dynamics of politics. There is no denying that political will plays a very crucial role in determining the success of PPP projects.
  
  To understand this challenge we don’t need to look too far. One of the prime examples of positive political will is the Alandur Sewerage project.
  
  The municipal chairman had personally pursued the private sector to become a part of the project. Backed by strong political leadership, support of opposition parties and the public resulted in a successfully completed project inspite of various hiccups during execution.
  
  On the other hand, we have the Pune Water supply project. The project, which even after fulfilling the government regulation, did not happen thanks to change in national and local political landscape.

• Low Entry Barrier:
  The entry point for private partners in water sector PPPs is quite low. As a result of this, inexperienced private players enter the PPP domain which, instead of benefitting the country, has only resulted in failure by encouraging the emergence of unorganised and unqualified players spoiling the market for the experts.

• Tariffs associated with water sector PPP:
  The tariffs associated with water sector PPPs are one of the reasons why such undertakings are less feasible. The subsidized tariffs of PPP ventures make it very difficult for private players to even cover operational and maintenance cost of the project.
  
  Besides, it has been observed that the local bodies have often been found strapped for cash to be paid to the operator (in this case the private partner). Until the subsidies related to tariff are properly dealt with,it will always be a major obstacle in successful implementation of water sector PPP.
  
  It is important that the consumers are convinced that paying tariffs (set as per the project requirements) will be beneficial for them in long run.
  
  The road is long and arduous however; the rapidly declining state of sustainable water supply in the country has made it imperative the Government does more to assist private partnerships than instituting a policy change.

Accelerating Public Private Partnerships in India

India has been witness to a fairly high growth on the economic front. The last decade has brought out the focus on India as next super power along with China. One of the major contributors to this growth has been the Public Private Partnership (PPP) ventures.

Unfortunately, the 2008 global recession affected this economic growth and PPP was one of the areas affected. Although PPP sector experienced slow growth, it was not entirely due to recession. There are other major reasons why the PPP sector has not achieved success it was expected to.

We spoke to Mr. Arun Lakhani – MD Vishvaraj India, one of the leading private players in PPP ventures to understand how the growth of PPP be accelerated in India. But before that, let's take a look at the current situation.

Current PPP Scenario in India:
The infrastructure sector in India has seen significant amount of investment in the past few years. It is expected that almost half of this investment will be coming from private players with the Government contributing to the other half of the investment.

India is a dynamic market for businesses and there is no dearth of willing participants for Public Private Partnerships. However, the ground reality is that the PPP ventures have not seen a hundred per cent success.

Some landmark projects such Nagpur 24x7 water supply, led by Vishvaraj Infrastructure have achieved phenomenal success while other have just about managed to cross the line. This is happening even after various initiatives have been undertaken by the Indian government to facilitate growth of PPPs.

So we discussed four fundamental ways in which the Government can accelerate growth in PPP

• Make PPP Data Accessible:
  There is an evident lack of a single repository of information regarding various PPP ventures executed in India. There is no central point which could act as a source of information for those who want to access data on policies, frameworks, successful models etc.
  
  Such an information database can act as a critical reference point for future PPP projects and act as a guide for companies and government bodies looking to implement PPP ventures for various projects.
  
  An information portal of this nature would also bring about transparency to the entire process. Data such as reports, agreements, status would be available for interested parties.

• Have A Dedicated PPP Regulatory Authority:
  Currently there is no regulatory authority for PPP in India. If there is to be a sustained growth of PPPs then having an independent authority to administer PPPs is essential. Having such an authority in place ensures PPP ventures are not affected by unwanted outside interferences in it execution.
  
  'A glance at nations like UK, US, Australia will give us a compelling reason as to why there is a need for such authority in India too. Not only will it help in disciplined growth of PPP but it will also attract foreign investors to India' Says Lakhani.
  
  Even the local private players who want to participate in PPP will receive encouragement and guidance.

• Increase financing:
  The private sector is highly dependent on banks for their financial needs. Unfortunately, due to the limits imposed by Reserve Bank of India, banks can only offer loans to a single business entity up to a certain limit. This has resulted in private partners in PPP becoming helpless when there is a huge financing required for PPP ventures, which is more often than not.
  
  One of the key issues plaguing this model in India is the limited financial support for private partners by banks. Although the banks try their best at offering financial help to the PPP venture, unfortunately it just is no sufficient.
  
  There is a need for creating more financial channels for private partners in PPP so that they can take on ventures that require heavy financial investments.

• Every Aspect of PPP Must Be Given Equal Importance:
  It has been observed that various aspects of PPP ventures such as government clearances, feasibility study and acquisition are not given adequate importance.
  
  In fact, the attitude that is evident is that planning a project and getting a partner for it is all that is required to ensure the success of the PPP venture and the rest will take care of itself.
  
  The aspects of PPP, mentioned above, are often put on secondary pedestal which eventually contribute to the delays in completion of PPP ventures.
  
  So, if we look at it small changes in governance models can contribute highly to the success of such ventures in India ensuring that we are no more considered 3rd world country but rather an economic super power.

PPP to Manage Urban Water Supply

In a country like India with a population of more than a billion and a large section of the population living in rural areas resources like water are worth their weight in gold.

Changing climatic conditions, irregular rains, lack of waste water management and pollution in lakes, rivers and local water bodies have led to a water crisis across the country. Although the government is trying to solve this problem at various levels the effort has not been very successful.

It has come to a stage where participation of private players must be considered to tackle the situation prevailing in these areas. But this is not as easy as it appears. Water privatization has been contentious topic and needs to be handled delicately.

To understand more about Public-Private-Partnerships in water and waste water management we spoke to Mr. Arun Lakhani, MD Vishvaraj Infrastructure Ltd. one of the leading organisations taking up PPP projects in India. Here's what he had to say about one of their landmark projects – Nagpur 24x7 water project.

The Project:
Nagpur is the third largest city in the state of Maharashtra and the seat of the annual winter session of the Maharashtra state assembly, "Vidhan Sabha". The city needs about 540lts a day for its population of 2.5million people.

For the first time in India a government body – Nagpur Municipal Corporation build a Public Private Partnership to deliver 24x7 water supply to an urban city. One of main challenges was that such a venture had never been tried before. The Nagpur water PPP project was first of its kind in India and took some time to design an acceptable and sustainable structure.

As the driving force behind this project Lakhani spearheaded the project with a clear plan and transparent processes. The venture has been successful and now a model for future projects.

The New Challenge:
Currently, Vishvaraj Infrastructure is implementing new projects in five districts of Karnataka; Magadi, Bidar, Basavakalyan, Shahabad and Yadgir.

The aim behind these projects is to create 3.81 lakh water connections across these five cities. Simultaneously, it also plans to lay 922 kilometres of pipeline.

The outcome of the project will be that more than 81,000 people will be receiving drinking water directly in their house taps. A goal that will greatly decrease the disease rate and increase sanitation and hygiene. The main goal of these projects is to overhaul the water distribution system in these five cities.

Talking on how the concerns regarding water privatization, it must be noted that the private partner is responsible for operations and providing tap water connections to the households of the targeted cities.

The Government body is responsible for deciding tariff and development plan for the city.

One thing that must be highlighted is that ever since the project has been implemented, people have been regularly paying bills without follow-ups. This shows how much receiving clean drinking water at home has impacted the lives of people.

Various state governments have now started turning to PPPs to manage drinking water supply to urban and rural areas.